What are the major differences between a free trade area and a customs union?

What are the major differences between a free trade area and a customs union?

A free trade area is looser than a customs union. Members of a free trade area removes bairiers to the flow of goods and services among themselves but different members may have different tariff rates or quota restrictions as regards to trade with outsiders. Members of a customs union adopt the same trade policy toward countries outside their organization in addition to abolishing trade barriers among themselves.